A tripolar international monetary system-centered on the U.S. dollar, the deutsche mark, and the yen - appears to be emerging. This paper not only assesses the role of the yen as an international currency but also presents a unified theory of international currency use and distinguishes between the roles of a nation as a world banker and as an international financial intermediary.

AlogoskoufisGeorge, and RichardPortes “European Monetary Union and International Currencies in a Tripolar World,” paper presented at the Georgetown Conference on the European Central Bank, Washington, August1991.

ArgyVictor, International Financial Liberalization — The Australian and Japanese Experiences Compared, Center for Studies in Money, Banking and Finance, Working Paper No. 8704A (Sidney, New South Wales: Macquarie University, July1987).

FrankelJeffrey A., (1989 b), “Commentary on the Dollar in the 1990s: Competitiveness and the Challenges of New Economic Blocs,” in Monetary Policy Issues in the 1990s (Federal Reserve Bank of Kansas City, 1989), pp. 275–81.

FukaoMitsuhiro, and KunioOkina, “Internationalization of Financial Markets and Balance of Payments Imbalances: A Japanese Perspective,” Carnegie-Rochester Conference Series on Public Policy, Vol. 30 (Spring1989), pp. 167–220.

International Monetary Fund, “Capital Account Developments in Japan and the Federal Republic of Germany: Institutional Influences and Structural Changes,” Supplementary Note 5in World Economic Outlook: A Survey by the Staff of the International Monetary Fund, April1989, World Economic and Financial Surveys (Washington: International Monetary Fund, 1989), pp. 84–89.

IsardPeter, and LilianaRojas-Suarez, “Velocity of Money and the Practice of Monetary Targeting: Experience, Theory, and the Policy Debate,” in Staff Studies for the World Economic Outlook, World Economic and Financial Surveys (Washington: International Monetary Fund, July1986).

KindlebergerCharles P., Balance of Payments Deficits and the International Market for Liquidity, Essays in International Finance, No. 46 (Princeton, New Jersey: International Finance Section, Princeton University, 1965).

KrugmanPaul, “The International Role of the Dollar: Theory and Prospect,” in Exchange Rate Theory and Practice, ed. by John F.O.Bilson and RichardMarston (University of Chicago Press, 1984), pp. 261–78.

MacedoJorge Braga de, “Portfolio Diversification Across Currencies” in The International Monetary System Under Flexible Exchange Rates: Essays in Honor of Robert Triffin, ed. by Richard N.Cooper andothers (Cambridge, Massachusetts: Ballinger, 1982).

MageeStephen P., and Ramesh K. S.Rao “Vehicle and Nonvehicle Currencies in International Trade,” American Economic Review, Papers and Proceedings of the Ninety-Second Annual Meeting of the American Economic Association, Vol. 70 (May1980), pp. 368–73.

MienoYasushi, “A Japanese Viewpoint on the Challenges Posed by the Rapid Internationalization of the Japanese Economy and the Financial System,” speech presented at the 19th Annual Meeting of the Yomiuri Economic Society, January1990.

SalantWalter S., “Capital Markets and the Balance of Payments of a Financial Center” in Maintaining and Restoring Balance in International Payments, ed. by WilliamFellnerFritzMachlup and RobertTriffin (Princeton University Press, 1966).

SwamyP.A.V.B., and George S.Tavlas “Is it Possible to Find an Econometric Law that Works Well in Explanation and Prediction? The Case of Australian Money Demand,” The Journal of Forecasting, Vol. 11 (January1992), pp. 17–33.

SwobodaAlexander K., “Vehicle Currencies in Foreign Exchange Markets: The Case of the Dollar,” Chap. 4 in The International Market for Foreign Exchange, ed. by Robert Z.Aliber(New York: Praeger, 1969).

SwobodaAlexander K., (1990 a), “Financial Integration and International Monetary Arrangements,” in The Evolution of the International Monetary System, ed. by Y.SuzukiJ.Miyake and M.Okabe (University of Tokyo Press, 1990), pp. 195–221.

TavlasGeorge S., On the International Use of Currencies: The Case of the Deutsche Mark, Essays in Inter-national Finance, No. 181 (Princeton, New Jersey: International Finance Section, Princeton University, March1991).

61. Policy Coordination in the European Monetary System. Part I: The European Monetary System: A Balance Between Rules and Discretion, by Manuel Guitian. Part II: Monetary Coordination Within the European Monetary System: Is There a Rule? by Massimo Russo and Giuseppe Tullio. 1988.